Labaton Sucharow LLP is the Court-appointed Co-Lead Counsel, together with Bernstein, Litowitz, Berger & Grossman LLP for Lead Plaintiffs Plymouth County Retirement System, State-Boston Retirement System and Police and Fire Retirement System of the City of Detroit in the proposed class action called Police and Fire Retirement System of the City of Detroit, et al. v. SafeNet, Inc., et al., No. 06-5797 (PAC)(S.D.N.Y.). Defendants include SafeNet, Inc. (“SafeNet” or the “Company”) and certain of the Company’s officers and directors. The proposed class generally includes all persons who acquired SafeNet common stock from March 31, 2003 through, and including, May 18, 2006 and were damaged.

Lead Plaintiffs allege that Defendants engaged in a long-running scheme to manipulate SafeNet’s financial statements by misreporting the financial implications of its (i) improperly backdating its grants to days on which SafeNet’s stock price had reached its lowest price in weeks, if not months and (ii) opportunistically granting SafeNet’s stock options just days prior to positive announcements. This scheme violated Generally Accepted Accounting Principles and SafeNet’s own stated accounting policies, and rendered SafeNet’s publicly reported financial results materially false and misleading. Lead Plaintiffs also allege that Defendants disseminated a series of false and misleading statements relating to SafeNet’s revenues and expenses in connection with certain long-term product development contracts.

In May 2006, SafeNet received a subpoena from the office of the United States Attorney for the Southern District of New York concerning the alleged options manipulation and the Securities and Exchange Commission (“SEC”) has initiated an informal inquiry. The Company also announced that it would have to restate its prior financial statements filed with the SEC. On April 11, 2007, SafeNet was acquired by a subsidiary of the private equity firm Vector Capital in a tender offer.

The case is currently pending in the U.S. District Court for the Southern District of New York before the Honorable Paul A. Crotty.